The Nobel Prize was established by the will of Alfred Nobel (1833-1896), the Swedish chemist who invented dynamite, to recognize humanitarian endeavors in physics, chemistry, physiology or medicine, literature, and peace. A prize in economics was introduced in 1969 after the Bank of Sweden donated funds for its monetary awards. In 1992 the economic prize carried a cash award of $1.2 million.

Nominations for the prize are solicited through invitation only, with over a thousand invitations per prize category, and require a written statement in support of the nomination. Committees then evaluate the nominees and make their recommendations to the appropriate prize-awarding organization. All the selection work for the Nobel Prize is conducted in secrecy. In economics the prize is awarded by the Royal Swedish Academy of Sciences. To date, thirty-two Americans have been honored with the prize.

The cuneiform inscription in the Liberty Fund logo is the earliest-known written appearance of the word "freedom" (amagi), or "liberty." It is taken from a clay document written about 2300 B.C. in the Sumerian city-state of Lagash.